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Section 337 and the Protection of Intellectual Property in the United States: The Complainants and the Impact

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  • Mutti, John
  • Yeung, Bernard

Abstract

Under Section 337 of the Tariff Act of 1930 a firm can challenge imports that infringe its U.S. intellectual property rights, such as patents, copyrights and trademarks. Based on publicly available information this paper examines the characteristics of firms that file complaints under Section 337 and also evaluates how firms are affected by the outcomes. We find a complaining firm, compared with peer firms in the same industry, is typically larger, produces a more diverse range of products, has invested more in intangibles and is no less profitable. A finding of no violation significantly depresses the filing firm's profits compared to peers. Section 337 appears to protect innovators, but its effectiveness in promoting more innovation cannot be demonstrated so clearly. Copyright 1996 by MIT Press.

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  • Mutti, John & Yeung, Bernard, 1996. "Section 337 and the Protection of Intellectual Property in the United States: The Complainants and the Impact," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 510-520, August.
    • Handle: RePEc:tpr:restat:v:78:y:1996:i:3:p:510-20
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    Cited by:

    1. Khoury, Theodore A. & Peng, Mike W., 2011. "Does institutional reform of intellectual property rights lead to more inbound FDI? Evidence from Latin America and the Caribbean," Journal of World Business, Elsevier, vol. 46(3), pages 337-345, July.
    2. Brander, James A. & Spencer, Barbara J., 2023. "Intellectual property infringement by foreign firms: Import protection through the ITC or court," Journal of International Economics, Elsevier, vol. 140(C).
    3. Eric P. Chiang, 2004. "Determinants of Cross‐Border Intellectual Property Rights Enforcement: The Role of Trade Sanctions," Southern Economic Journal, John Wiley & Sons, vol. 71(2), pages 424-440, October.
    4. Catherine Y. Co, 2004. "How Valuable are the Patents Behind Section 337 Cases?," The World Economy, Wiley Blackwell, vol. 27(4), pages 525-539, April.
    5. Chihcheng Lo, 2015. "Institutional Void And The Evolution Of Appropriability Regime - The Case Of The Transition Of Intellectual Property Rights Policy In Taiwan," Proceedings of Business and Management Conferences 2303747, International Institute of Social and Economic Sciences.

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